Bankruptcy

  • January 20, 2006

    Four Years Later, United To Emerge From Bankruptcy

    Almost four years after entering Chapter 11 bankruptcy protection, United Airlines’ reemergence plan has been approved, putting an end to the tumultuous reorganization and leaving some parties still unsatisfied.

  • January 20, 2006

    AOL Latin America Offers Creditors Deal

    Shareholders of America Online’s bankrupt Latin American division have proposed a liquidation plan that will allow unsecured creditors to recover 100% of their claims, but only if they agree not to hold them liable for the Internet unit’s collapse.

  • January 20, 2006

    Ex-Schlotsky’s Deli Execs Ask For Chapter 7

    There doesn’t seem to be an end in sight to the money woes plaguing Schlotzsky's Deli. Two former executives of the franchise have asked a bankruptcy court judge to convert the company’s bankruptcy proceedings from Chapter 11 to Chapter 7, claiming attorney and creditor fees are draining the company’s already dry coffers.

  • January 20, 2006

    Delta Expects To Emerge From Chapter 11 In 2007

    Setting an example for a host of U.S. airlines that have opted for bankruptcy to fend off high fuel prices and ravaging competition, Delta Air Lines Inc. said it has achieved about 70% of the financial goals in its Chapter 11 recovery plan. It expects to emerge from bankruptcy a little over a year from now.

  • January 19, 2006

    Judge OKs $1.4M In Bonuses For Refco Employees

    Desperate to keep current employees from jumping ship, futures broker Refco got the green light from a bankruptcy court judge to pay $1.4 million in retention bonuses to 32 employees.

  • January 19, 2006

    Varig Presents Swap Plan To Creditors

    The largest airline in Latin America, which has been operating under bankruptcy protection since last year, will present its creditors with a plan to swap credits for holdings in a fund that will assume control over the troubled company.

  • January 19, 2006

    Deutsche To Pay $147M To Settle Fraud Charges

    Deutsche Bank AG agreed Thursday to pay $147.5 million to settle charges it participated in complex securities fraud that bankrupted a brokerage firm in September 2001.

  • January 19, 2006

    Flight Attendants Blast Northwest Over Labor Plans

    Igniting the anger of its flight attendants union, bankrupt Northwest Airlines Corp. has proposed to replace a large number of American flight attendants with workers from Asian countries, in a bid to slash labor costs by $1.4 billion and ward off major downsizing, layoffs, and liquidation.

  • January 19, 2006

    Judge Denies Request to Question Delphi Executives

    In a blow to Delphi Corporation shareholders, a federal bankruptcy judge has rejected a request, spearheaded by a group of pension funds, to question former executives of the auto parts giant about allegations of accounting fraud in the company’s upcoming bankruptcy trial.

  • January 18, 2006

    Refco Bankruptcy Stalls Amid Creditor Complaints

    The bankruptcy proceedings for futures broker Refco Inc. have been anything but smooth, plagued by conflicts between the company, its creditors, its board of directors and the U.S. Trustee in charge of the case.

  • January 18, 2006

    Stelco Stalled on Restructuring Plan

    Bankrupt Stelco Inc.’s proposed restructuring plan has been put on hold until January 20 or later, after the judge overseeing the two-year-old proceedings asked that the company prove the feasibility of the plan.

  • January 18, 2006

    United Reaches Deal With Flight Attendants Union

    United Airlines Corp. has cleared a major hurdle in its march toward emerging from bankruptcy, after the union representing its 17,000 flight attendants agreed to a reduced pension plan on Wednesday.

  • January 17, 2006

    Winn Dixie Equity Committee Disbanded

    Shareholders of grocery store chain Winn-Dixie will no longer have a say in the struggling company’s bankruptcy proceedings after a judge disbanded the equity committee in Winn-Dixie’s Chapter 11 case.

  • January 17, 2006

    Northwest Reaches Tentative Deal With Machinists

    Northwest Airlines Inc. has reached a tentative agreement with the union representing its machinists and aerospace workers, but has pushed ahead with efforts to nullify the collective bargaining agreement between the carrier and its remaining employees.

  • January 17, 2006

    United Exit Plan Continues to Rile Up Union

    Less than a week after bankrupt United Airlines settled a dispute with its unsecured creditors committee over details in its reorganization plan, the airline faces persistent objections over issues it did not resolve with its flights attendants union.

  • January 17, 2006

    Adelphia Amends Reemergence Plans

    After being mired in a billion dollar accounting fraud scandal that forced it into Chapter 11 bankruptcy protection, Adelphia Communications is putting the finishing touches on a reemergence plan that includes the sale of most of its assets to competitors Time Warner and Comcast.

  • January 13, 2006

    Telco's Chapter 11 Filing Ignites SEC Ire

    A bankrupt telecom company has come under fire from the U.S. Securities and Exchange Commission over its proposed liquidation plan, which regulators see as a time bomb for setting off a stock manipulation scheme.

  • January 13, 2006

    Varig Pays $56M To Keep Planes

    The financial troubles consuming the airline industry are not confined to the U.S. Brazilian airline Viacao Aerea Rio-Grandense SA, which has been operating under bankruptcy protection since June, has paid $56 million to avoid surrendering half of its planes.

  • January 13, 2006

    NY Governor Candidate Implicated In School Bankruptcy

    A now-defunct Kentucky college that owes over $3 million in loans taken out by its former chief executive should not be liquidated, according to a Kentucky bank, because the sale of all the school’s assets would still not be enough to pay back the borrowed money.

  • January 13, 2006

    Controversial Judge In Delta Bankruptcy Replaced

    The judge overseeing bankruptcy proceedings for Delta Air Lines Inc. has been permanently replaced after initially taking a two-month medical leave. Representatives of the number-three carrier, as well as the court, say the development would not delay the case.